What is Net Unrealized Appreciation?

Net unrealized appreciation is the difference between the price you initially paid for YUM! Brands stock and what it is currently worth. Let’s assume you have been investing in YUM! Brands stock in your 401k for the last 15 years. You have accumulated 1,000 shares with an average cost of $30 per share. Let’s also assume that the stock is currently worth $70 per share. In our example, the gain of $40 per share, or $40,000 is the Net Unrealized Appreciation or NUA. Once you have a qualifying event you have choices related to NUA that could save you thousands of dollars.  The quiz will determine if this strategy could make sense for you.

 

 

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